Morocco reforms its labour market to open the door to global investors and companies
- Key issues of the reform
- Why the new labour law could multiply foreign investment
- Morocco, Africa's technology hub
The Moroccan government has announced a new update to its labour code in order to bring it into line with the new demands of professional mobility and the digital age, with a view to increasing its competitiveness internationally.
In this context, the Minister of Economic Inclusion, Employment and Skills, Younes Sekkouri, announced the new measures that will come into force to offer the Moroccan business community and foreign companies a ‘more agile and transparent environment that, in turn, encourages foreign participation and makes it easier for them to operate in the country’.
This new reform is based on three key pillars: adapting jobs to the digital economy; improving conditions for hiring remote staff; and promoting new employment models implemented by companies and technology platforms.
According to the Ministry, these reforms will support the social protection of employees, improve their competitiveness and provide them with flexibility that will allow them to complement their working life with their daily lives.
Key issues of the reform
- Recognition of the platform economy: with this point, the Ministry wants to achieve the legal inclusion of workers in digital applications, services and temporary employment.
- Permission to have multiple employers: with this new proposal, the Government will remove the restriction of a single employer per contributor to the Caisse Nationale de Sécurité Sociale (National Social Security Fund), allowing workers to have more than one job at the same time.
- Regulation of remote working: this measure will have the greatest impact on foreign companies wishing to set up in Morocco. This new legislation will allow the introduction of rules to facilitate the regulation of working hours, ensure digital disconnection and implement a new framework of labour rights in ‘virtual environments’.
- Social protection: in this way, the Moroccan authorities will seek to fully adapt the social coverage of remote workers or those who work independently.
- Greater trade union presence: the government will open up the possibility for workers to consult with trade unions, companies and civil society.
All these issues are in line with the establishment of a common framework that complies with international standards in order to attract more and better foreign investment in the sectors with the highest global growth: artificial intelligence, technology and digital platforms.
Why the new labour law could multiply foreign investment
The race for technological innovation has already begun in the vast majority of the world's emerging powers. In this scenario, Morocco has decided to take the lead.
In 2024, Morocco's digital services and outsourcing sector achieved exports worth more than $2.8 billion, the highest figure since records began in 2007. These results are part of the ‘Maroc Digital 2030’ digital strategy, under which the North African country will invest $1 billion annually. But how can this strategy encourage foreign investment?
Firstly, thanks to labour flexibility and new Moroccan working models, which offer a perfect framework for the needs of technology platforms by reducing barriers to entry for foreign investors.
Support from the New Investment Charter. Since its approval, this legal framework has improved the business climate by reducing risks. The regulatory quality of the Charter has significantly strengthened investor assessments in key areas for employment such as social and legal protection and the country risk ratio.
The young population's extensive knowledge of technology. Morocco has one of the most technologically connected societies in the world. With usage and knowledge rates on par with major technological powers, Morocco is a source of digital talent that provides peace of mind and security to investors.
Finally, the improvement and implementation of 5G technology has become the spearhead of the national strategy. With this achievement, the government is seeking what is known as the ‘triple combination’ of investor-friendly regulations, infrastructure suited to technological and digital needs, and human talent.
Since then, major technology companies have decided to set up in the country. A clear example is the Chinese company Gotion High-Tech, which has invested more than £6.5 billion in the automotive sector, specifically in the development of electric batteries.
Morocco, Africa's technology hub
With one of the highest human and technological development indices on the continent, Morocco meets all the requirements to consolidate its role as a commercial platform between Europe, America and Africa.
Its geographical position, international alliances and trade agreements – together with the New Investment Charter and this new labour reform – have made Morocco one of the strategic points for international and regional trade.
As a result of this position, key sectors in the national economy, such as the automotive and port sectors, have made significant progress. Morocco is currently the European Union's leading trading partner and vehicle exporter, and the bloc's most important African partner.
Likewise, the figures for the port of Tanger Med continue to rise. With a volume greater than the ports of Valencia and Algeciras, two of the flagships of the port sector in the Mediterranean, Tanger Med is now one of the 15 ports with the highest container traffic in the world and the largest in Africa.
These advances are catapulting Morocco towards a new economic model where adaptation to digitalisation and international openness will be the cornerstones of quality job creation and the inflow of foreign capital.